Gelfund Acquires Two Suburban DC Apartment Communities for $40M
By Keith Loria March 9, 2022 6:01 pm
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Gelfund Real Estate Opportunities is expanding its multifamily presence in the Washington, D.C., metro region.
The company acquired two properties, the 150-unit Annabal Apartments and the 55-unit Glen Burnie Town Apartments, from Promark Partners for $40.2 million. Both are value-add properties in Glen Burnie, Md.
The buyer already was familiar with the area, having previously acquired the 263-unit Gatewater Landing at 7357 Ridgewater Court in 2020 for $45.3 million
Transwestern represented both sides in the deal.
“There’s some remaining in-unit value-add and economies of scale by owning another asset in Glen Burnie,” Dean Sigmon, an executive vice president at Transwestern, told Commercial Observer.
Promark Partners acquired Annabel Apartments, located at 7491 E. Furnace Road, in May 2017 and the Glen Burnie Town Apartments, located at 201 Crain Highway North, in November 2018.
Sigmon noted that the seller was at the end of its business plan for the property and is exploring buying larger assets. Under Promark’s ownership, the apartments underwent a series of interior renovations to cabinets, appliances, countertops and flooring.
“New ownership will benefit from a competitive advantage in the submarket where modern apartments are in high demand,” Sigmon said. “The Glen Burnie and Anne Arundel County apartment markets have performed well with an extremely low historical vacancy rate and solid rent growth.”
A recent report by Transwestern’s research affiliate, Delta Associates, revealed Class A vacancy rates for low-rise apartments in North Anne Arundel County were just 2.1 percent as of December 2021, with stable rent growth in the Class B sector for renovated units.
Joining Sigmon on the deal were Transwestern’s Robin Williams, Justin Shay and Michael D’Amelio.
Requests for comment from the buyer and the seller were not immediately returned.
Keith Loria can be reached at Kloria@commercialobserver.com.
